Isgec Heavy Engineering Limited has informed stock exchanges about a significant penalty imposed by tax authorities, creating a substantial financial impact on the engineering company.

Penalty Details and Authority

The Joint Commissioner of Central Tax & Central Excise, Bengaluru East Commissionerate, has imposed a penalty of ₹13,67,16,445 on the company. The order was received on December 30, 2025 at 18:23:00 hours, as disclosed by the company in its regulatory filing.

Nature of Alleged Violations

The tax authorities have levied the penalty alleging specific GST compliance failures. The Joint Commissioner imposed a tax demand of ₹6,27,80,982, claiming the company failed to declare and discharge GST liability on advances received for supply of services in statutory returns.

The alleged violation pertains to Section 74(9) of the CGST Act, where the company is accused of not properly discharging GST liability on advances received for service supply.

Financial Impact Assessment

The total financial impact on Isgec Heavy Engineering amounts to ₹19,94,97,427, comprising two main components:

Company's Response Strategy

Isgec Heavy Engineering has announced its intention to challenge the order through proper legal channels. The company stated it will file an appeal under the Goods and Services Tax Act to contest the penalty and tax demand imposed by the authorities.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 read with Para A of Part A of Schedule III of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has also published this information on its official website at www.isgec.com as part of its transparency obligations.

This development represents a significant regulatory challenge for the engineering company, with the substantial financial implications potentially affecting its operational and financial activities pending the outcome of the planned appeal process.

Isgec Heavy Engineering Limited has announced that ICRA Limited has reaffirmed credit ratings for its wholly owned subsidiary Saraswati Sugar Mills Limited. The rating communication, dated December 31, 2025, covers facilities totaling ₹401.65 crores with no changes from the previous ratings assigned in October 2024.

Credit Rating Details

ICRA Limited has maintained consistent ratings across all facility categories for Saraswati Sugar Mills Limited. The rating reaffirmation demonstrates stability in the subsidiary's creditworthiness and financial standing.

Banking Partner Distribution

The credit facilities are distributed across multiple banking institutions, providing diversified funding sources for Saraswati Sugar Mills Limited. State Bank of India holds the largest exposure among the banking partners.

Cash Credit Facilities (₹336.65 crores)

Term Loan and Non-Fund Based Facilities

HDFC Bank Limited provides the entire term loan facility of ₹60.00 crores, while State Bank of India handles the non-fund based facilities of ₹5.00 crores. All facilities carry the respective [ICRA]A(Stable) and [ICRA]A1 ratings.

Regulatory Compliance

The rating reaffirmation was communicated to stock exchanges in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has also uploaded this information on its website at www.isgec.com for stakeholder access.

ICRA Limited noted that the ratings will be due for surveillance within one year from the rating communication date, with the agency reserving the right to review ratings based on new information or changing circumstances affecting the rated entity.